AXA Investment Managers states its case in the MPF market

After the global financial crisis, institutional investors weighed counterparty risk more heavily than ever — a parent company’s balance-sheet strength became a top consideration when choosing fund managers. Jean-Pierre Leoni, Head of Asia-Pacific at AXA Investment Managers (AXA IM), set out the French insurance giant’s wholly-owned asset manager’s MPF strategy.

Why does parent strength matter so much?

“Investors want to see balance sheet strength — and this was not seen to be as critical before the global financial meltdown,” Leoni said. Post-crisis, institutions sought the safety of large groups, making counterparty risk a prime consideration as never before. AXA IM’s backing by the AXA Group was its core selling point in the MPF market.

What role does brand awareness play?

Brand is an important element of strategy. In MPF, an employer-driven market, employer and member awareness of a manager’s brand directly influences fund flows. AXA IM made brand-building a key plank of its Hong Kong strategy, alongside its retirement-savings expertise, to win share in the MPF market.

The takeaway for workers: when choosing MPF funds, look beyond track record and fees — a manager’s scale and stability deserve a place in the decision, since this money compounds for decades. Compare managers’ funds with MPF fund search.